SHANGHAI, Dec. 9 (CBI China) -- Economic and Trade Committee of Yunnan Province in the afternoon announced the "the trial means of non-ferrous metal reserves in Yunnan Province ", giving the answer to the doubt of industry last week, 1. Reserves are limited to the products of enterprise in Yunnan Province; 2. Reserves time is from December 1st, 2008 to December 31st, 2009; 3. Reserve funds are sourced from bank loans through smelters` non-ferrous metals stock, and value-added marketing and the provincial budget funds give proper subsidies to these smelters for the interest and warehouse charge occurring during reserves.

From the above point of view, CBI learned from survey that lead-zinc industry respond moderately. First of all, "Reserves" is not for the main national or local government, but is the way that the local government helped local non-ferrous metal manufacturers be out of the plight and resolve part of their cash flow problems in order to safeguard the people's livelihood; second, the enterprise can maintain production before New Year, However, the actual domestic situation of supply and demand has not improved, there exists stock price risk in enterprises inventories for reserves, and profit and loss state does not be reversed.

CBI believes the Yunnan provincial government plan boosts local non-ferrous metals in short-term; however, it has no major substantive promotion for the overall domestic market conditions. In addition to Guangxi province relevant leaders follow up some reserve plans at present, other major non-ferrous metals provinces have no response.

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